tv [untitled] August 27, 2010 8:30am-9:00am PST
so far. although our workload is increasing and lot in the field, the teams continue to excel. we have said the incident and lost time rates well below industry average. our incident rate currently stands at 1.7 when the industry average is 4.7. we are also doing very well on incremental compliance, out of our quarter,8í we had incidence among compliance that were under 1%. again, very much in line with industry standards. by the way, i think your copy had a typo theresr -- it's a 93, but it is3d actually 99% compliance. system shutdowns during the reporting period. we now have completed 30 of our
108 shutdowns for the program. also, a lot of media coverage on a program -- we have had very favorable articles in san francisco business times as well as water world, and the engineering news record, which is a?a publication in the indusy is actually going to be visiting our site next month, so we actually do need to get additional coverage there. we will be inviting you soon to ground breaking events for the bay tunnel that will be taking place in mid-september, and that will be with general manager harrington and the mayor, so more to follow on that. we are still working through some challenges at the pre- construction level, and i wanted to share with you some of the ways we are trying to constructively try to deal with some of these challenges. with so many projects now
getting close to construction, the resourced agencies are receiving a lot of permit applications from us and trying to keep all these permits on track. it has been challenging, but we are working very closely through our interagency task force to try to help them make priorities. the three projects that are here are those that we are currently focusing on to make sure that there is no delay due to any permitting issues. on the regional groundwater project, i wanted to highlight that the challenges are associated with the need to conduct additional offer for studies as well as the need to acquire 18 different right of way tight -- type of transactions. although all of that is ongoing, it has not added any additional time extension as of this fourth
quarter. wanted to also point out a challenge on the seismic upgrade of pipeline three and four. new studies performed by our design consultants have revealed that pipeline four could fail under a major seismic event. because of those studies, we have had to revise our design to include additional improvements in that area. we are also having to relocate some lines, so those changes have extended the construction period for the project by three months and added $3 million to the project cost. finally, i wanted to highlight the fact that we are continuing through our real estate staff to work closely with the sec -- with the lessees at the horse
stable prior to construction, which is scheduled for the beginning of next year. construction challenges -- we issued our first ncp on the irvington tunnel project in july. what we're doing, because of the permitting issue that i talked about earlier, some of these permits are taking longer to secure. what we're doing is following an approach here where we are issuing --h we negotiated with the contractor to issue multiple ñrthe first allows the contacted to begin for chairman, some metals, and some field survey. we can then secure land and issue an additional for the f
-- the first allows the contractor to begin procurements, submittals, and some field surveys. one challenge we are encountering on the bay division pipeline 5 project, we have encountered a high concentration of nickel in some of the soil we dug up for trenching activity, so that will be requiring special hazardous material handling and compliance with more stringent disposal requirements. also on that project, we have m site that will require us to tunnel under that site, which, ofrhvok course, is going to bee costly. we also have five other sites withó archaeological discoveries that could impact construction, so we are monitoring those very carefully. we are trying to work through
some last minute changes, skit under control of facilities with our operations map. some late changes have impacted our construction activities, and i have asked our engineering staff to work closely with the water enterprise engineering staff to try to resolve this issue by the end of the quarter. we need to do a better job act identifying control needs earlier on -- better job of identifying control needs earlier on. i feel confident that we will be able to resolve the issue. finally, i wanted to point out that there are two projects with change orders over 10%. in the case of the lawrence livermore, we have an item in today's agenda seeking your approval for a last change order on a project that will bring both cost and schedule of of the 10% limits that requires your approval.
in the case of the crossover contract, we have not reached the 10% mark, but after negotiation of an outstanding change order, we will, and i intend to come before you in september to seek approval on that particular change order. as usual, there is a summary here of the calaveras replacement project. we have completed what we refer to as the 100% draft design submitted. we have yet to complete environmental review. that has been submitted to all our project team members, including the cm team. we have retained the services of the beach as our consultant, and they were given notice to proceed early august, so the cm team will initiate a review of those documents. all other activities on the eir and permitting front is
continuing as planned, and we are on track at this point to be able to certify this eir by the end of the year. a few weeks ago, general manager harrington and i visited a number of our project sites, and we were quite astonished by the amount of progress in the field, and i wanted to share some of what we saw. this is a picture that you will not be able to see once this project is completed. it is the alameda west portal with the project connects to the coast range tunnel. the contractor will be installing the piping across the calaveras fault zone, and will start tunneling under alameda creek. we have completed three of the shutdowns required for the project, which includes a lot of our scheduling risk, and we are
on track to essentially complete this project by september 2011. this shows the installation of the 72-inch baking division pipeline 5. that segment is now 27% complete as it makes its way through the residential area. work on that project this summer has focused on completing improvements across schoolyards and creeks, and we are actually conducting worked on that segment at 12 different sites simultaneously to facilitate the work. similar work is taking place on the peninsula as we go across a number of residential neighborhoods, parks, schools, and key intersections, you can see that we are literally digging trenches at residents;
front doors -- residents; front doors. it is a very tight right away, which makes our work very challenging, and we anticipate that the pipeline installation on both sides of the day will be completed in the spring and summer of next year. on the peninsula side, we are 15% complete. the new crystal springs bypass project is truly a success story in my view. we have completed now the tunnel excavation as well as the installation of lining. what you see here is a 96-inch pipe that is used for the lining being lower in the tunnel, and that was actually completed in half the time that was planned. we are now 80% complete on that tunnel project, and we are right now doing major planning for a shot down in early 2011. the university retrofit is now
55% complete. this is the second largest reservoir in the city. what i would like to point out here is that the contractor for this project has been a leader in apprenticeships hiring, and we have also done very well on citizen complaints for a project of this size in an urban area. we have only received two complaints, and that is pretty amazing, i think. it reflects the great work by our team and contractor. substantial completion on the project is only seven months away. the last two slides on my presentation in response to a recommendation by the independent review panel, which wanted us to track milestones at the program level. what you see on the second and third column is a comparison of what we had planned to do and what we had completed.
for this reporting quarter, we completed nine of our milestones. the two environmental approvals we missed were for hunters point reservoir and the, station, and in both cases, small amounts of asbestos at the project site required that we do additional work, but this delay will not impact in any way our construction. we also had one final completion milestone that was missed, and that was for the pump station, and that was due to requirements imposed by the fire department for our emergency generator. we are going to be completing that work in the next week, and the pump station is operational, it is just a matter of the closeout phase being the lead here -- being delayed.
we did better on the regional program. only milestone missed was the big advertisement that have the attached reserve program, and there were research agency, that required we modeling, lead an advertisement for that project is now forecasted for august 14, and that completes my presentation. commissioner moran: some comments. first of all, this is the first quarter with a new format, and i found it greatly improved. wanted to pass that on to you. i am a total ban [inaudible] they make life a whole lot
easier. i think the underlying report, especially with the graphics, is clear enough that the project level detail really is not necessary. that is one commissioner's opinion. but i thought the rest of it was so clear and easy to get through that it did not really need the treatment of the cover memo. the kind of thing that i think would benefit in the cover memo is very much the discussion you just went through in terms of from your level what the issues are that you are wrestling with at the moment, and i think if there was a place for that in writing, that the cover memo might help you with that. subsequently, one thing that really, i guess, presented itself more clearly than it has before, just the way in which some of the project schedules are bunching toward the end. both of the reports really
portrays that quite vividly. that would seem to present some management challenges that in the original challenges were not present o. i ask julie about this earlier, and she gave me a great response. i would like to tell the commission what you need to do and are doing to manage that kind of circumstance that might not have been present if things were scheduled going normally. >> i think, of course, the activities that take place at the end of the program are construction activities. what is key here is to have a very robust construction management program, and as you know, we have spent a lot of time and resources putting together a program that we feel is scalable and that will promote consistency, and what we have done is we are basically dividing up the work in the
region and in some cases, on the big projects, it is even broken down at the project level, so by bringing in these 10 individual teams with the help of consultants, we are breaking down the work. i think i would be a little more worried if we had the same team trying to handle all the work, but by breaking it down by region and project, the issue then becomes an issue of consistency, and that is where the pcm program manager is silky. in my view, i think we have put in place something that can handle that. so far, as we have progress, i have not seen a decrease in performance, and we will be monitoring that very carefully. with that said, we will be, by the end of the year, having an audit team that is going to look at our construction management performance, and we will bring them back probably two more times -- every nine months or so
-- to make sure that we are not slipping back. just by the nature of the system we put together and the way we organize the program, i think we are well positioned to be able to get through the ramp up without any major impacts. i am now co-located with the cm team and personally attending a lot more of the field meetings. by paying more attention to it, at least i can probably catch any potential issues earlier than if i was not focused as much. commissioner moran: the good news is that in the latter stages of the project, we have a better set of tools to deal
with construction management issues. the bad news is that we need them because we have run out of slack and really need those systems to operate effectively. one of the things that just drives me is just an observation -- i do not think there is any particular follow-up -- but it does appear that it creates a personal continuity issue. if you have a nice, normally shaped construction schedule, you can afford for people to leave later on in the project cycle and not suffer much from that. in this circumstance, we need to keep our best talent as long as we possibly can. if they are looking at that club as well -- frankly, i ended up thinking that the ssip might be really helpful in that respect. that does present a different
set of issues. >> yes, well, i'm trying to retain a large step. it is already starting, and i think it is to keep some of our strong this people. president crowley: colleagues, anything? commissioner: it is stunning how we impact so many lives. there is one place where we went through a barbecue pit.
we own the right of way through there, so we have a lot of impact, and i have not seen and heard people up in arms. through much of the bay area. a project management team, our construction true, our communication group has been doing an amazing job of letting folks know what we're trying to minimize disruption and that we are trying to do this for everyone's good, and people have been various understanding. i would be happy to take any of you out to these facilities. good news. president crowley: next item,
mike cambell. >> good afternoon. often, it is called clean power sf. the big news is that last week, we did issue a request for proposals, and on the july 9 meeting, you were all getting feedback and some comments on the earlier situation and you had seen, so i am just going to take a brief moment to talk about this and incorporate those comments and in touch base on the schedule and answer any questions any of you may have. so from the feedback we received, the cleanup, in my opinion, it makes it much more
readable. also for the layperson. as you all probably understand, this is a big challenge with the rfp. the first place that was changed regards the oil interview. it will be directly tied to the same areas that are being scored in the written areas. the second is related to the use of recs. in terms of allowing you to provide the portfolios, there are benefits associated with this. there are some policy perspectives on that, so we
limited those with a standard amount, which, right now, is currently 20%, with a goal of 51%. as you recall, the state requirements do not allow the use of these, so that 20% would be about them, and the difference between the 20% in the 15%i(.&m8zu2zñi, half of thg from it, at most 15.5%. a figure that way, we can split the difference and it the value of the reduce costs for the portfolio but also giving a clear message that we're trying to seek the development of new resources. commissioner vietor: could i ask
remaining part can be used for this. that goes to 33%. vñiat that point, you are down o only 18%. that is a shrinking portion. commissioner vietor: and will there be a consideration for bids that have lower -- >> yes, the designation clearly states that a portfolio with more will get less. >> and the trade-off is costs. if we can get that. commissioner vietor: good, i went to go on record again. i am not a big fan.
credits," so if you could just say that for people who do not know. >> ok, and another element was commissioners wanted to have the posers clearly described what has made in their mind the program's success. so we have had that be part of what they have required. and getting feedback, just a moment on that. we are hoping to get energy efficient demand response through one or two w vehicles. one is the basic portfolio that the proposal is going to be providing, and the second is, if you recall, when you're planning to have a request for offers, or an rfo process. egwe will be able to get creatie ideas from the main supplier of the program as well is -- as others. there is also altering minimum contract term from five years to
three years with the discussion i and particularly how that might relate to the2q rfo process, and that could have something to do with resources. obviously, we are open to longer terms if that is whatqb proposas want to provide, but we did not want to potentially closed doors to good thinking that might be out there. in terms of the schedule moving forward, the rfp was advertised last week. we will be going in in learning about the program as well as making connections with one another, because a lot of what we are looking for -- creating a consortium. consortium.the deadline for prot
to have questions for us, september 15, and we are happy this is a very significant program. we went to make sure that the proposed errors have a chance to get some creative thinking and make connections, to have the full two months. after proposals, will be moving to the shortlist, so we will try to conclude negotiations with the intention of trying to serve customers in the spring of 2011. that is all but i have prepared, and i will be happy to answer any questions. president crowley: